Options to provide tenants for early departure from lease?

Options to provide tenants for early departure from lease?

Member since 2020 · 7 posts · 0 votes

Both tenants are joint and several liable.  One tenant request to leave for a new job.  Only options in lease to leave early are to payout full balance remaining on lease term or sublet pending landlord approval.  

The tenant wishes to payout "their" portion of rent until remainder of lease term.  Given the jointly and severally liable, there isn't an individual option for just "their" portion.  

First option is for both tenants to continue paying rent as they are doing through remainder of lease. 

Second option is to continue to search for sublet, mitigating monthly expense.

The third option is my question, can the two tenants write up an agreement, whereby I would witness and sign off on as well, that the tenant wishing to move pay remaining tenant 'their' portion of rent due for lease term?  There are benefits for each individual over other options.  The outgoing tenant would be removed from lease after move out date for their benefit.  Landlord would walk through with remaining tenant and all agree that remaining tenant takes over condition of premises.  The remaining tenant would then be solely liable for full balance due each month until lease ends with the outgoing tenant's monies in hand.  From landlord's benefit, the remaining tenant has shown to be very responsible and it is easier to contact someone not paying rent at property, should it occur, than someone that is in another city.  There is concern that moving tenant would decide not to pay at some point and thought is that it would be better to have money in hand of remaining tenant than not.  


Thoughts?




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  • Rental Property Investor · Saratoga Springs, NY · Member since 2017 · 238 posts · 200 votes
    5y

    @Justin S.

    Sounds like you're over thinking it. Why would you draft additional documentation if they are both jointly and severally liable? Hold them to the lease and have them figure it out.

    The only reason I'd change the existing lease is if the tenant staying has another person moving-in in place of the outgoing tenant or if they take the second option.

  • Member since 2020 · 7 posts · 0 votes
    5y

    Thanks Michael.  The only benefit from my prospective was the less risky case with monies paid and tenant gone vs tenant gone and they decide not to pay.  But yes agree most landlords would just say you guys are liable and figure it out yourselves.  

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